Employer Superannuation Default Funds – New Requirements

From the Australian Taxation Reporter

From 1 January, employer superannuation default funds must be MySuper compliant.

Default funds are funds that employers nominate and pay superannuation contributions into, in the event that an employee does not nominate a fund of their own. To be clear, from this date, all superannuation guarantee contributions need to be paid to a fund with a MySuper product or an employee chosen fund (it is not necessary that the employee chosen fund offers a MySuper product). MySuper accounts are a no-frills account with a simple set of product features including low fees, and a single diversified investment option.

Employers should check that the default fund you are currently using provides a MySuper product, or plans to do so by the New Year deadline. If not, you will need to choose a new default fund (which does offer a MySuper product) by 1 January 2014.  For more information, visit the Tax Office website.

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